eHealthInsurance.com Investor Relations – News Release

“Free” Obamacare Coverage Available in 2018 for Most Subsidy-Eligible Individuals Earning $25,000 or Less, But It’s More Unaffordable Than Ever for Many Who Don’t Get Subsidies, eHealth Report Shows

Average premiums for the lowest-cost health insurance plan available
through Healthcare.gov in surveyed cities to increase 26% in 2018,
making health insurance “unaffordable” for many unsubsidized individuals
by age 35

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 1, 2017--
Today eHealth, Inc. (NASDAQ: EHTH) (www.ehealth.com)
published an analysis of recently released 2018 health insurance costs,
including the cost of benchmark silver plans used to calculate the value
of premium subsidies, across multiple age bands in 40 metropolitan areas
served by Healthcare.gov.

eHealth’s analysis found that the average individual earning $50,000 a
year would pay $466 per month for the lowest-cost health plan, with a
$5,600 average annual deductible. That person would pay nearly $11,200
out of pocket in combined premium and deductible costs for 2018 before
their insurer covers serious medical expenses.

Highlights of eHealth’s analysis of costs in surveyed markets include
the following.

Rate increases:

Average premiums for the lowest-cost health insurance plan available
will increase 26% in 2018 compared to 2017.

Zero-premium bronze coverage:

Most subsidy-eligible individuals earning $25,000 or less per year
will have access to free major medical coverage should they choose to
apply their subsidy dollars toward the lowest-cost bronze plan rather
than the benchmark silver plan. (Although these individuals would pay
no premium, they may still pay deductibles and other out-of-pocket
costs.)

Most individuals age 55+ earning $30,000 or less per year will have
access to free major medical coverage should they choose to apply
their subsidy dollars toward the lowest-cost bronze plan rather than
the benchmark silver plan. (Although these individuals would pay no
premium, they may still pay deductibles and other out-of-pocket costs.)

The subsidy cliff in surveyed markets:

Individuals whose income increases from 400 percent of the federal
poverty level (FPL) to 401 percent will face an additional $3,263 in
average health insurance premiums over the course of a year.

The average cheapest bronze plan will cost $194 per month, ($2,328 per
year) for persons receiving the minimum subsidy (because they earn 400
percent of FPL).

The average cheapest bronze plan will cost $466 per month, ($5,591 per
year) for persons not receiving a subsidy (because they earn 401
percent of FPL).

The difference in income between someone earning 400 percent of FPL
and 401 percent is approximately $120 per year.

The affordability gap:

The lowest-priced health insurance plan will cost $5,591 per year for
the average person in the surveyed markets not receiving a subsidy,
making health insurance “unaffordable” (according to Affordable Care
Act rules) if they earn less than $69,457 in household income in 2018.

“These 2018 premium figures are striking because they show the gap is
widening between the health insurance haves and have-nots,” said eHealth
CEO Scott Flanders. “As costs continue to increase aggressively and the
dollar value of premium subsidies keeps pace, many lower-income persons
will now have access to health insurance coverage with zero-dollar
premiums while middle-income families who don’t qualify for subsidies
may be required to pay the equivalent of a second mortgage for the same
coverage. This is not a sustainable model for a health insurance market
intended to serve the needs of all Americans.”

In preparing its analysis, eHealth reviewed data published on
Healthcare.gov to find the lowest-cost plans available and the
second-lowest-cost silver plans available in 2018 for persons age 25,
35, 40, 45, 50, 55 and 64 in 40 metropolitan areas.

Calculating Tax Credits and the ACA’s Affordability

According to the rules of the Affordable Care Act (the ACA or Obamacare)
the second-lowest-cost silver plan available, known as the “benchmark”
plan, is used in calculating the dollar value of advanced premium tax
credits (premium subsidies). Persons earning up to 400% of the federal
poverty level may be eligible for premium subsidies. Under ACA rules,
health insurance is considered “unaffordable” when the lowest-priced
plan available costs more than 8.05% of household income (MAGI)
in 2018. See the methodology note below for more information.

Affordability Gap: Income Level Where Bronze Plans Become “Affordable”

Average lowest-priced bronze premium monthly

Average lowest-priced bronze premium annually 2018

Income at which bronze becomes “affordable”

$466

$5,591

$69,457

Methodology

eHealth surveyed 2018 monthly premium rates for the lowest-cost
ACA-compliant plan, lowest-cost bronze plan, and the benchmark silver
plan available in 40 cities/metropolitan areas for individuals at ages
25, 35, 40, 45, 50, 55 and 64. Rates were gathered through the 2018 plan
preview feature on Healthcare.gov in October 2017.

Premium increases from 2017 to 2018 were calculated by dividing the
monthly premium for the lowest cost plan in 2018 by the monthly premium
for the lowest cost plan for 2017 in eHealth’s October 12, 2017analysis
of 2017 plan costs in 25 U.S. cities for individuals ages 25, 35 and 64.
Regardless of age, the average premium increase was consistent from 2017
to 2018 at 26%.

Each plan in each market had its own rate increase for 2018. Rates may
vary from zip code to zip code within the same metropolitan area or
state, and less-costly plans may be available in some cases to consumers
who do not use Healthcare.gov.

In determining the subsidy threshold – the point at which government
subsidies are no longer available to people purchasing qualifying health
plans – eHealth employed federal poverty-level guidelines for the
contiguous United States for 2017.

The affordable price of a health insurance plan for persons not
receiving subsidies is calculated as 8.05% percent of household income
for 2018. Health insurance is considered unaffordable under the ACA for
such persons when the lowest-priced available plan exceeds this amount.
For persons receiving subsidies, the affordable price, and by extension
the dollar value of subsidies, varies based on income. Subsidies may be
available to people with a household income of up to 400 percent of the
federal poverty level. In calculating affordability for the present
report, eHealth used figures derived from IRS
Rev. Proc 2017-36.

All dollar amounts in this report were rounded to the nearest full
dollar.

eHealth, Inc. (NASDAQ: EHTH) owns eHealth.com, a leading private online
health insurance exchange where individuals, families and small
businesses can compare health insurance products from brand-name
insurers side by side and purchase and enroll in coverage online and
over the phone. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources, exceptional
telephonic support, and powerful online and pharmacy-based tools to help
Medicare beneficiaries navigate Medicare health insurance options,
choose the right plan and enroll in select plans online or over the
phone through Medicare.com (www.Medicare.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and PlanPrescriber.com (www.PlanPrescriber.com).